End-to-End Demo Flow
One complete business cycle: purchase → stock → sale → payments → returns → expense → payroll → reports.
- Product
- MS Rectangular Pipe · 2x1 · 16 Gauge · 20 FT
- Supplier
- Supplier A — Ittehad Steel Agency
- Customer
- Customer A — Al-Madina Fabricators
- Warehouse
- Main Godown (Shershah)
- Period
- 01 Sep 2026 – 19 Sep 2026 · FY 2026-27
- Costing
- Weighted average, landed cost including freight and labour
Bill PB-2051 · Supplier invoice ISA-7741 · 5 TON @ PKR 262,000 / TON = PKR 1,310,000. Freight PKR 40,000, unloading PKR 6,000, labour PKR 14,000 added as landed cost.
- Dr Inventory — Steel Stock 1,370,000
- Cr Accounts Payable (Ittehad Steel Agency) 1,370,000
Purchased in TON, stock kept in KG: 5 TON × 1,000 = 5,000 KG. Pieces derived at 25 KG per 20 FT length = 200 pieces. Landed cost PKR 1,370,000 ÷ 5,000 KG = PKR 274 / KG weighted average.
Bank payment BP-142 of PKR 800,000 against PB-2051.
- Dr Accounts Payable 800,000
- Cr Bank — Meezan Current 800,000
Remaining PKR 516,400 (after purchase return) shows against Ittehad Steel Agency in the payables aging.
MS Rectangular Pipe 2x1 · 16 Gauge · 20 FT — Purchased 5,000 KG, Sold 1,750 KG, Available 3,250 KG, 130 pieces, with a horizontal bar at 65%.
Invoice INV-1042 to Al-Madina Fabricators. Line 1: 1,000 KG @ PKR 310 / KG. Line 2: 30 pieces (750 KG) @ PKR 6,800 / piece. Cutting and loading charges added.
- Dr Accounts Receivable 515,000
- Cr Sales — Steel 515,000
- Dr Cost of Goods Sold 479,500 · Cr Inventory 479,500
Cash receipt CR-311 of PKR 350,000 against a PKR 515,000 invoice; PKR 165,000 stays on credit.
- Dr Cash in Hand 350,000
- Cr Accounts Receivable 350,000
1,750 KG (70 pieces) leaves stock. Stock Ledger records the OUT movement at weighted average cost and the tracker bar drops to 65% available.
A further receipt clears the remaining PKR 165,000; the customer ledger running balance reduces accordingly.
- Dr Cash / Bank · Cr Accounts Receivable
Remaining PKR 516,400 paid from bank; supplier ledger balance returns to zero.
- Dr Accounts Payable 516,400
- Cr Bank 516,400
SR-014 — customer returns 120 KG of pipe (bent). Return value PKR 37,000 adjusted against the customer balance.
- Dr Sales Returns 37,000 · Cr Accounts Receivable 37,000
- Dr Inventory · Cr Cost of Goods Sold (stock back in)
PR-008 — 200 KG returned to supplier (off-spec). PKR 53,600 credited by the supplier and stock reduced.
- Dr Accounts Payable 53,600
- Cr Inventory — Steel Stock 53,600
EXP-320 — truck hire Shershah → Korangi, PKR 18,000 paid in cash.
- Dr Freight & Transport 18,000
- Cr Cash in Hand 18,000
September payroll for 5 staff; net salary PKR 322,408 with advances deducted, then paid from cash and bank.
- Dr Salaries & Wages · Cr Salaries Payable
- Dr Salaries Payable · Cr Cash / Bank
Stock, customer ledger, supplier ledger, cash and bank, receivables, payables, sales, purchases and profit & loss all reflect the full cycle above.
| Area | What the client should verify | Status |
|---|---|---|
| Stock | Purchased, sold, returned and available quantities in KG and pieces | Posted |
| Customer Ledger | Invoice debit, receipt credit, return credit and running balance | Posted |
| Supplier Ledger | Purchase credit, return debit, payment debit and running balance | Posted |
| Cash / Bank | Receipts and payments hitting the correct account | Posted |
| Receivables / Payables | Aging buckets and outstanding totals | Posted |
| Sales / Purchases | Document numbering, statuses and totals | Posted |
| Profit & Loss | Gross profit after cost of goods sold, less operating expenses and payroll | Posted |